Secured Loans

Transcription

Secured Loans

Your guide to residential secured loans, buy to let, semi-commercial mortgages and loans
Secured Loans with
a choice of options
Core Products & Criteria
Accepted
Interest Only or Capital & Repayment Secured Loans:
Residential, Semi-commercial, Buy to Let, Business Loans
rst and second charges
Business Use Loans available which are exempt from CCA
regulation
Buy to Let Loans and Mortgages unregulated
les:
77.5% LTV plan
Demerit points accepted up to 70% LTV
Cost and time saving Valuation Bypass Schemes and
Mortgage Reference Bypass Schemes
Many income sources:
Employed, self-employed, DWP, additional income
Many property types:
Including high rise, non-standard construction, defective,
ex-council, Buy to Let & semi-commercial properties
September 2011
These plans and commissions supersede all previous packs, criteria, special plans and commissions including overrides. This information is for use by authorised intermediaries only and must not be distributed to potential borrowers.
© Blemain Finance 2011 BLF0604 ST
Secured Loans
Case outside criteria?
Residential Consumer and Business
We will always take a view!
Prime
Plan Name
TRP:01
TRP:10
TRP:20
Light
TRP:30
TRP:40
TRL:01
TRL:10
Medium
TRL:30
TRL:40
TRM:10
TRM:20
TRM:30
Heavy
TRM:40
TRH:20
TRH:30
TRH:40
Maximum Demerits
0
3.5
5.5
6.5
unlimited
Highest number of
secured arrears in last
number of months
(0 in 12)
(1 in 3)
(3 in 12)
(2 in 3)
(4 in 12)
(4 in 12)
unlimited
(0 in 24)
(2 in 12)
(3 in 24)
(3 in 12)
(4 in 24)
(4 in 12)
(6 in 24)
Number of qualifying
CCJs/Defaults demerits in
last number of months
Maximum
LTV for Property
Types
Minimum Valuation
Acceptance Fee
unlimited
A
77.5%
72.5%
70%
65%
60%
70%
65%
60%
50%
65%
62.5%
55%
50%
60%
55%
50%
B
72.5%
67.5%
65%
60%
55%
65%
60%
60%
50%
60%
57.5%
55%
50%
55%
55%
50%
C
67.5%
62.5%
60%
55%
50%
60%
55%
55%
50%
55%
55%
55%
50%
50%
50%
50%
£70,000
<£70,000
£150,000 £125,000 £100,000
£70,000
<£70,000 £150,000 £125,000
£70,000
<£70,000 £125,000 £100,000
£70,000
<£70,000 £100,000
Loan Amount
£3,000 - £100,000
£3,000 - £100,000
£3,000 - £100,000
£3,000 - £100,000
Loan Amount
Rate
Rate
Rate
Rate
11.95%
13.75%
11.65%
12.99%
£3,000 - £19,999
10.95%
£20,000 - £100,000
Property Types
14.95%
Demerit Points are defined as secured arrears, a CCJ or a Default
Type A
Standard Construction houses and bungalows excluding ex-council.
Type B
Standard construction ex council houses and bungalows; all flats
and maisonettes (up to a maximum of 6 floors) and purpose built
apartments (not ex council).
Type C
Non standard construction; ex council flat and maisonettes;
defective, high-rise (over 6 floors), properties below £70,000 or
poor remarks on valuation.
Quality Packaging Allowance
CCJs and Defaults Definitions
(Defaults show as Status 8 or D on
the credit bureaux search)
% Net Loan
Outstanding Items
Level 4 (Standard)
Minimum
requirements
1.5%
Level 3 (Enhanced)
>2
2%
Level 2 (Enhanced)
<3
2.25%
Level 1 (Enhanced)
0
2.5%
(Capped at £5,000)
≤£300
>£3,000 and
≤£5,000
>£5,000 and
≤£7,500
>£7,500 and
≤£10,000
Outstanding item defined as missing, inaccurate, invalid or out of date item,
from the ‘Outstanding Items Definition List’. Please see iDeal Pack for details.
3.5% of Net Loan
(minimum £450)
Business Loans
Loan Amount
TRP Plans All other plans
£3,000 - £30,000
£795
£995
£30,001 - £50,000
£995
£50,001 - £100,000
£1,295
£100,001 - £150,000
£1,695
+
For every additional £50,000
£500 extra
Title Insurance & Solicitor’s Costs
Business Loans
Loan Amount
Solicitor’s Costs Title Insurance
£0 - £25,500
£100
£175
£25,501 - £35,000
£125
£200
£35,001 - £45,000
£175
£225
Solicitor’s Costs and
£45,001 - £55,000
£200
£250
Title Insurance not
£55,001 - £75,000
£275
£275
charged
£75,001 - £100,000
£350
£300
£100,001 - £150,000
£450
£400
+ £100 extra
For every additional £50,000 + £50 extra
Acceptance Fee, Solicitor’s Costs and Title Insurance are paid by applicant
and added to the advance. Solicitor’s costs charged on all business loans and
unregulated cases and include VAT where applicable. Please refer to Quick Quote
Calculator.
CCA
Consumer Loans
>£10,000
Bypass Schemes
Valuation Bypass Schemes*
<24 months old & unsatisfied
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
3 Demerits
Satisfied or >24 months & unsatisfied
Ignore
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
Secured arrears - Current arrears are equivalent of 1 full calendar month payment. Includes first or second charge arrears or a combination.
Cannot be deducted from the redemption figure. Arrears to be cleared are defined as current arrears as detailed on the credit bureaux or
confirmation from the mortgage lender at the time of completion. Maximum arrears are the total of the first and second charge arrears.
IVAs & Bankruptcies - Bankrupts and IVAs with satisfactory conduct more than 1 year accepted by underwriter referral up to a max of 65% LTV.
Satisfactory explanation required for all CCJs, Arrears, Defaults, IVAs and bankruptcies. Proof may be required.
CCA Regulated Consumer Loans
- The Maximum Affordable Monthly
Repayment must be calculated by
entering the applicant’s income and
expenditure details into the Affordability
Assessment Calculator, which is accessible
by logging into www.brokervenue.co.uk
CCA
Consumer Loans
Individual CCJs/Defaults
>£300 and
≤£3,000
Income Calculation Net Pay
Quality Level
Address history - minimum of 3 years for all applicants. Debt consolidation - we
reserve the right to clear unsecured debt directly and in these cases will require
redemption figures with a minimum of 30 days expiry. Non-conforming lender as
first charge - must be with same lender for a minimum of 12 months. LTV is based
on redemption figure. Cases less than 50% LTV - no redemption figure required.
Purpose of Loan letter is required on all cases clearly detailing any breakdowns
in purposes and amounts. Responsible Lending If a client is redeeming a second
charge it must be in the applicant’s best interests and to their benefit.
Business Loans - Maximum percentage includes loan & mortgage payment.
Net Monthly Income Maximum %
All Income Sources
Employed only
£1,500 - £2,000
45%
£2,500 +
55%
£2,001 +
50%
The plans matrices and notes above are summaries and guidelines. All other standard terms and conditions apply.
Please refer to General Underwriting & Processing Guide, Ideal Pack, and General Terms & Conditions for further details.
Hometrack
Realtime Valuation
Maximum Loan
Drive By
Valuations
£30,000
£40,000
£50,000
Maximum LTV
65%
65%
50%
Confidence Level
4 or higher
n/a
n/a
Property Types
A
A
A
Property Valuation
£150,000 - £350,000
£0 - £350,000
* Not available for flats, maisonettes, apartments, new builds.
Mortgage Reference Bypass Scheme
Maximum
Loan
Maximum
LTV
£30,000
75%
£40,000
60%
no max
50%
Credit Bureau Search accepted:
• Equifax search accepted
• Experian search accepted if mortgage
not showing on Equifax
Minimum property valuation £70,000
© Blemain Finance 2011 BLF0604 ST1
Large Loans
Residential Consumer and Business
Prime
Plan Name
TRP:01L
Maximum Demerits
Highest number of
secured arrears in last
number of months
Number of qualifying
CCJs/Defaults demerits in
last number of months
Maximum
LTV for Property
Types
TRP:02L
Medium
TRL:01L
TRL:02L
TRM:01L
Address history - minimum of 3 years for all applicants.
Heavy
TRM:02L
TRH:01L
TRH:02L
Debt consolidation - we reserve the right to clear unsecured debt directly and in
these cases will require redemption figures with a minimum of 30 days expiry.
0
3.5
5.5
unlimited
Non-conforming lender as first charge - must be with same lender for a
minimum of 12 months.
(0 in 12)
(1 in 3)
(3 in 12)
(2 in 3)
(4 in 12)
unlimited
LTV is based on redemption figure. Cases less than 50% LTV - no redemption figure
required.
(0 in 24)
(2 in 12)
(3 in 24)
(3 in 12)
(4 in 24)
A
60%
70% by referral
B
55%
65% by referral
C
50%
60% by referral
55%
Purpose of Loan letter is required on all cases clearly detailing any breakdowns in
purposes and amounts.
unlimited
Responsible Lending If a client is remortgaging or redeeming a second charge it
must be in the applicant’s best interests and to their benefit.
65% by referral
Acceptance Fee
50%
50%
Minimum Valuation
Loan Amount
Light
60% by referral
50%
55% by referral
65% by referral
3.5% of Net Loan
(minimum £450)
£150,000
£150,000
£150,000
£150,000
£100,001 - £500,000 (>£250,000 by referral)
£100,001 - £500,000 (>£250,000 by referral)
£100,001 - £500,000 (>£250,000 by referral)
£100,001 - £500,000 (>£250,000 by referral)
11.50%
11.96%
13.76%
14.96%
Rates
Property Types
Type B
Type C
Loan Amount
All plans
£100,001 - £150,000
£1,695
+ £500 extra
Business Loans
CCA
Consumer Loans
Loan Amount
Solicitor’s Costs Title Insurance
Solicitor’s Costs and
£100,001 - £150,000
£450
£400
Title Insurance not
+ £100 extra
For every additional £50,000 + £50 extra
charged
Acceptance Fee, Solicitor’s Costs and Title Insurance are paid by applicant
and added to the advance. Solicitor’s costs charged on all business loans and
unregulated cases and include VAT where applicable. Please refer to Quick Quote
Calculator.
Type A
Standard Construction houses and bungalows excluding ex-council.
Business Loans
CCA
Consumer Loans
≤£300
>£300 and
≤£3,000
>£3,000 and
≤£5,000
>£5,000 and
≤£7,500
>£7,500 and
≤£10,000
>£10,000
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
3 Demerits
Ignore
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
confirmation from the mortgage lender at the time of completion. Maximum arrears are the total of the first and second charge arrears. IVAs
& Bankruptcies - Bankrupts and IVAs with satisfactory conduct more than 1 year accepted by underwriter referral up to a max of 65% LTV.
Mortgage Reference Bypass Scheme
Maximum LTV 50%
Credit Bureau Search accepted:
• Equifax search accepted
• Experian search accepted if mortgage not showing on Equifax
Minimum property valuation £70,000
% Net Loan
Quality Level
Outstanding Items
Level 4 (Standard)
Minimum
requirements
1.25%
Level 3 (Enhanced)
>2
1.75%
Level 2 (Enhanced)
<3
2%
Level 1 (Enhanced)
0
2.25%
(Capped at £5,000)
- The Maximum Affordable Monthly
Repayment must be calculated by
entering the applicant’s income and
expenditure details into the Affordability
Assessment Calculator, which is accessible
by logging into www.brokervenue.co.uk
All Income Sources
Employed only
£1,500 - £2,000
45%
£2,500 +
55%
£2,001 +
50%
Buy to Let and Semi-commercial
Mortgages and Loans
Prime
Plan Name
TSP:01
TSP:10
TSP:20
Maximum Demerits
Light
TSP:30
TSP:40
TSL:01
TSL:20
Medium
TSL:30
TSL:40
TSM:01
TSM:20
Heavy
TSM:30
TSM:40
TSH:20
TSH:30
TSH:40
0
3.5
5.5
6.5
unlimited
Highest number of secured
arrears in last number of
months
(0 in 12)
(1 in 3)
(3 in 12)
(2 in 3)
(4 in12)
(4 in 12)
unlimited
Number of qualifying CCJs/
Defaults demerits in last
number of months
(0 in 24)
(2 in 12)
(3 in 24)
(3 in 12)
(4 in 24)
(4 in 12)
(6 in 24)
Minimum Valuation
First
Charge
£150,000 £125,000 £100,000 £70,000 <£70,000 £150,000 £100,000 £70,000 <£70,000 £150,000 £100,000 £70,000 <£70,000 £100,000 £70,000 <£70,000
Purchases Max LTV
75%
70%
65%
55%
50%
65%
60%
55%
50%
65%
60%
50%
50%
60%
55%
50%
Remortgages Max LTV
65%
60%
55%
50%
50%
60%
55%
50%
50%
55%
50%
50%
50%
50%
50%
50%
£3,000 - £200,000
(>£200,000 by referral)
Loan Amount
Maximum LTV
Second
Charge
unlimited
65%
Loan Amount
Rates
60%
55%
£3,000 - £200,000
50%
50%
60%
55%
50%
£3,000 - £200,000
50%
55%
50%
50%
£3,000 - £200,000
50%
50%
50%
50%
£3,000 - £50,000
£3,000 - £50,000
£3,000 - £50,000
£3,000 - £50,000
11.79%
Deal saver rate 10.90% by referral
12.25%
13.79%
14.99%
Qualifying Contracts
First charge: properties with <40% commercial usage with no immediate family
residential occupancy. Second charge: all properties.
Non-conforming lender as first charge - must be with same lender for a minimum
of 12 months.
LTVs based on market value/purchase price. Cases <50% LTV no redemption figure
required.
Occupants A copy of a signed Assured Shorthold Tenancy (AST) required for Buy to
Let properties. If there isn’t an occupant an agent’s rental assessment is required and,
at the time of our loan, we will need confirmation in writing from the customer that
no one is in residency. If the client’s spouse is living in the property we will need a
waiver with solicitors to witness and advise.
Purpose of Loan A purpose of loan letter is required on all cases clearly detailing any
breakdowns in purposes and amounts.
Applicant’s Solicitors
If the loan is a purchase or the loan is over £250,000, solicitors must act for the
applicant. All solicitors must have 3 or more partners within the practice, with a Law
Society membership of 5 years or more. If not, please contact your underwriter.
Acceptance Fee
Loan Amount
£3,000 - £30,000
£30,001 - £50,000
£50,001 - £100,000
£100,001 - £150,000
TSP Plans
£795
All other plans
£995
£995
£1,295
£1,695
+ £500 extra
Property Types
Type A
Standard Construction houses and bungalows excluding
ex-council.
Type B Reduce Max LTV by 5% (to a minimum of 50%)
Type C Reduce Max LTV by 10% (to a minimum of 50%)
≤£300
>£300 and
≤£3,000
>£3,000 and
≤£5,000
>£5,000 and
≤£7,500
>£7,500 and
≤£10,000
>£10,000
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
3 Demerits
Ignore
Ignore
1 Demerit
1.5 Demerits
2 Demerits
2.5 Demerits
confirmation from the mortgage lender at the time of completion. Maximum arrears are the total of the first and second charge arrears.
IVAs & Bankruptcies - Bankrupts and IVAs with satisfactory conduct more than 1 year considered by underwriter referral up to a max of 65% LTV.
Loan Amount
£0 - £25,500
£25,501 - £35,000
£35,001 - £45,000
£45,001 - £55,000
£55,001 - £75,000
£75,001 - £100,000
£100,001 - £150,000
Solicitor’s Costs
£100
£125
£175
£200
£275
£350
£450
+ £50 extra
Title Insurance
£175
£200
£225
£250
£275
£300
£400
+ £100 extra
Acceptance Fee, Solicitor’s Costs and Title Insurance are paid by applicant and added
to the advance. Solicitor’s costs charged on all business loans and unregulated cases
and include VAT where applicable. Please refer to Quick Quote Calculator.
% Net Loan
Quality Level
Outstanding Items
Level 4 (Standard)
Minimum
requirements
1.25%
Level 3 (Enhanced)
>2
1.75%
Level 2 (Enhanced)
<3
2%
Level 1 (Enhanced)
0
2.25%
(Capped at £5,000)
Buy to Let Rental Income - Rental
Income (or Agent Assessed Rental
Income) must be a minimum of 100% of
the total secured lending repayments.
(If rent is less than 100% of secured
lending payments then additional
income acceptable with a Declaration of
Income and Affordability.)
All Income Sources
£1,500 - £2,000
45%
£2,001 +
50%
Employed only
£2,500 +
55%
General Terms and Conditions
Assessing Regulation
Loan Amount
Regulation
≤£25,000 >£25,000
>40% immediate
family occupancy
FSA
9
9
9
CCA
9
9
9
9
9
CCA Business
Exempt
Buy to Let
9
9
Acceptable Security
All property structures including land considered in
England, Scotland and Wales. Minimum of 50 years + term
of loan for leasehold properties. See plans for details.
Acceptance Fee
See individual plans for details.
Age
Minimum age 18 years old, maximium end of loan term
80 years old.
Applicants
When an applicant is married or a couple living together
in excess of 12 months, whether on the title or not, the
application must be in joint names.
Assessing Affordability
An assessment will be required for all loans, however this
will differ depending on the loan’s regulation.
An Affordability Assessment Form will be required. Also see
‘Income & Income Proof for CCA Regulated consumer loans’.
Business Loans, Buy to Let & Semi-commercial
please see plans for income calculation. Also see ‘Income
proof for Business Loans & Buy to Let’.
Assessing Affordability for CCA Regulated Loans
(not including Business Loans and Buy to Let)
It is important that the broker and the lender assess an
applicants affordability thoroughly to ensure that they can
afford the loan both now and in the known future. (Please
see ‘Income and Income Proof’).
To assist you in making this decision CCA Regulated
loans will be assessed using an affordability assessment
model which takes into account the applicant’s income,
expenditure and credit payments. (See the Affordability
Assessment Calculator available in broker venue). The
Affordability Assessment Calculator will provide a Maximum
Affordable Monthly Repayment (MAMR) that Blemain
Finance will accept based on the information provided.
As well as assessing an applicants income and expenditure
there are three key elements that need to be considered.
These elements are:
• is the income or expenditure stated plausible ?
• is the loan payment affordable now?
• is the loan payment sustainable for the period of the loan?
The Affordability Assessment calculator has been built to
consider plausibility and sustainability when determining
>50% for business purpose OR
First
Business Partnerships of more than 3
Charge
persons and Limited companies
Second
Charge
9
9
9
9
9
9
9
the MAMR; however there are some points that you will
need to verify and challenge with the applicant.
Plausibility
Expenditure - All expenditure declared by applicants should
be a realistic reflection of their general spending. You should
advise the applicant to use bills, invoices and receipts to
help them complete the affordability assessment. Where
the expenditure appears unrealistic or lower than we would
expect, then we will require a plausible explanation from
the applicant as to why their expenditure appears to be low
for that particular item.
We reserve the right to contact an applicant to confirm
their declared expenditure for plausibility to enable the
loan to proceed.
Income
Income needs to be appraised to ensure that it appears
to be relevant to the occupation that has been stated by
the applicant, particularly for self employed applicants.
Employment and accountant verification calls may be
required to be made by the Underwriter.
Sustainability
It is essential that an applicant can afford the loan
throughout the whole term. It is important therefore
that the income they have declared will be sustained
for the whole term of the loan, taking into account the
monthly cost of their debt may rise and other household
emergencies may happen during the term of the loan.
Lending into Retirement
If the applicant can demonstrate they have adequate
pension provisions, investments or savings that will cover
the payments once they have retired, this can be considered
up to age 80.
It is also accepted that certain professionals may be able
to continue to work beyond retirement. Where an applicant
provides this intention as a way of maintaining payments
then you will need to assess this for plausibility and in some
cases proof may be required.
The loan should end on or before the applicant’s 80th
birthday.
Using Benefit Income
Where the term of the proposed agreement will extend
beyond the period in which the applicant will receive
particular benefits, e.g. Child Tax Credits, the applicant
should provide a plausible explanation as to how the
income will be replaced or any expenditure related to the
benefit will be no longer required. The explanation must be
assessed for sustainability and plausibility and in some cases
we may require proof.
mortgagee. These cases are strictly subject to Underwriter
approval.
Bankrupts/IVAs/CVAs
See plans. It may be possible to clear the IVA/bankruptcy/
CVA by underwriter referral.
We will not lend behind the following lenders or associated
companies; - please note this list is not exhaustive and
subject to change at any time 5D, Affirmative, Associates,
Base, Black Horse, Black Horse / Cedar Holdings, Central
Trust, Churchhouse Trust, Davenport Securities, Interbay,
London Mortgage Corporation (Charges Pre Oct 2004),
London & Scottish Bank, Norton Finance, Ocean Money,
Prestige (Sheldon and Stern, Barex, Lawnbourne, etc),
Private Mortgages (dependant on terms), Sherringtons,
Swift Group, Wave Lending, Welcome, Wood berry
Securities, etc.
Broker Fees
May be charged on all plans and must have been agreed
with the applicant. Maximum Broker Fee that can be
charged is the lower of 15% of the net loan or £5,000. Where
the property valuation is >£500,000 or an audit valuation is
required, these maximum amounts may be plus valuation
costs, with underwriter approval. Proof of valuation cost will
be required.
Commissions/Remunerations
You should disclose a monetary amount of the
remuneration you will earn to the customer and hold
confirmation on file.
Early Repayment Charges
Consumer Loan – CCA Regulation early repayment charges
apply. Business Loan redemptions will be calculated as a
percentage of the initial balance for the first 8 years of the
term being 6,6,6,5,4,3,2,1.
Ex-council Properties
Scotland – we do not lend on ex-council properties in
Scotland within the pre-emption period. England & Wales
- Ignore all pre-emption. We may also take into account any
future costs or service charges that the applicant will be
liable for and reduce the LTV accordingly. Also see property
type list on plans.
Equitable Charges
By referral only - Equitable charges not accepted on
shared ownership properties, fringe lenders as first charge,
semi-commercial or Buy to Let. All cases are strictly subject
to underwriter approval. The lender reserves the right to
decline the case. Maximum age at end of term is applicant’s
state pensionable age. Proof that consent has been declined
will be required in all cases.
First Charge Mortgagees/Lenders
We will lend behind most high street banks and building
societies, and will consider second charges behind most
non-conforming lenders: Accord Mortgages, Advantage
Home Loans, Amber Homeloans, BM Solutions, Britannic
Money / Mortgage Trust, Capital Home Loans, Capstone
Mortgages, Citibank, DB Mortgages, Derbyshire Homeloans,
E Mex Home Funding Ltd, Endeavour Personal Finance,
First Active, First National, Future Mortgages, GE Money,
GMAC/RFC, Godiva Mortgages, I Group, Infinity Mortgages,
Kensington Mortgages, London Mortgage Company
(FSA Mortgages only), Money Partners, Mortgage
Agency Services, Mortgage Business, Mortgage Works,
Mortgages PLC (1-5), Oakwood Home Loans, Paragon,
Platform Homeloans, Preferred Mortgages, Redstone
Mortgages, Rooftop, SPML, Stroud & Swindon, Sunbank,
UCB Homeloans, Verso, Victoria Mortgages, West Bromwich
Mortgage Company.
If the lender is not referred to here, please refer to
underwriter.
We will not lend behind any FRINGE lenders and will not
secure a third charge.
Type of Mortgage: Low Start / Deferred Interest / Fixed Rate
/ Cash Back / Daily Interest / Flexible / Credit Reserve, etc.
We will consider lending behind these but will require a
redemption figure with a full Mortgage Reference. The Loan
to Value will be based on the redemption figure and not
the mortgage balance and may be reduced. We may also
require a Maximum Liabilities Confirmation Letter.
Ground Rent and Service Charges
When the Security is a leasehold property we will require
confirmation in writing from any freeholder that all ground
rent and service charges are paid and up to date. Where
there are arrears these will need to be cleared from the
advance and we will need written authority from the
applicant(s) that they understand and authorise them to be
disbursed from the loan.
Any significant service or ground rent arrears may be
considered when assessing the customer’s affordability of
the new loan with us, and where there are concerns the
loan may be rejected.
INCOME AND INCOME PROOF for CCA Regulated
Consumer Loans
(not including Business Loans and Buy To Let)
For Business & Buy to Let Loans see - ‘Income Proof for
Business Loans & Buy to Let’.
Income proof is required for all applicants in all cases.
In instances where the proof of income is the applicant’s
bank statements (including internet bank statements)
please remember to cross reference any other items
detailed in the bank statements to those stated for
expenditure in the Affordability Assessment Form for
accuracy.
Employed Income
Payslips or an Employer Confirmation is required in all
cases where the applicant is employed. Please note when
an applicant is paid in cash we will need an Employment
Confirmation Form in all cases. The employed income
calculation is as follows:
We may in special circumstances apply an equitable charge
if consent to register a charge is not given by the first
Average Net Income is:
Total Gross YTD – (Income Tax YTD +
NI Contributions YTD + Pensions YTD)
Divided by the period
If the applicant receives payslips they should include year to
date totals, be computerised or printed and should confirm
the applicant’s name. If the applicant is paid monthly
we require two of the last three month’s payslips. If the
applicant is paid weekly we require four payslips from the
last two months.
If the applicant does not receive payslips then an Employers
Confirmation must be provided, which is available on
Broker Venue. This confirmation must be addressed to the
broker or Blemain Finance.
All Overtime, Bonus and Commissions are accepted as
part of the applicant’s income providing that the applicant
does not have any knowledge that the Overtime, Bonus or
Commission payments will reduce or stop in the future. If
they do have knowledge that this income may reduce or
stop then they should not be included in the income.
Probationary Period
Minimum term in employment is 12 months. Applicants in a
probationary period will not be accepted.
Temporary Contract workers
Applicants on a fixed term, long term or renewable contract,
will be considered on a referral basis. Evidence of their
contract must be provided in conjunction with the required
relevant proofs of income. Short term contracts are not
acceptable.
Self Employed Income
Minimum trading period 12 months.
Applicants will be considered to be self employed if they
are a:
• Sole Trader (including those who subcontract on an
individual or multiple basis)
• Partner who is currently in a Partnership or Limited
Liabilities Partnership
• Shareholder in a Limited company owning more than 20%
of any shares issued
Applicants who employ an Accountant
If the applicant has an Accountant, we require an original
copy of the Accountant’s Certificate. This must be
completed by an Accountant who holds a current practicing
certificate and is a member of accepted accounting bodies.
For details please see the current Accountant’s Certificate.
The net income figure used to complete the Affordability
Assessment is the amount shown on the certificate in the
relevant box titled ‘Profit after tax + NI (before deducting
drawings)’ for Sole Traders and Partnerships and the box
titled ‘Client’s total income (dividends + salary) for Directors
and Owners of Limited companies. This can be used
providing the information provided is less than 6 months
old.
Net Income figure
Divided by the relevant period e.g. 12 months
General Terms and Conditions
If the information is greater than 6 months old then the
lesser of the amount detailed in the Accountant’s Certificate
or the projected earnings will be used.
If the applicant’s projected earnings are higher than those
detailed on the Accountant’s Certificate we will require
a plausible reason for the increase in net income and
confirmation that the increase is sustainable.
The Accountant can enter this information into the relevant
section of the Accountant’s Certificate.
Applicants who do not have an Accountant
If the applicant doesn’t have an Accountant then a SA302
will be accepted.
The HMRC will provide the applicant with an annual
SA302 statement which details the applicant’s income and
deductions. We will accept an original or certified copy
of the SA302 that is <12 months old as proof of income
providing that the applicant supports their current trading
and capacity status with two strong proofs (e.g. original
trading invoices which are billed to the applicant, VAT or
Inland revenue correspondence dated within the last 3
months that is relevant to the current trading period, etc).
The net monthly income from the SA302 will be calculated
using the following method:
Income for tax purposes (Income Tax + NI Contributions due for the year)
Divided by 12
If the applicant doesn’t have an Accountant, SA302 or
the SA302 that isn’t dated within the last 12 months the
applicant will need to employ the services of an Accountant,
who can then provide an Accountant’s Certificate.
Rental Income - if being used as income for a CCA
Regulated Consumer Loan
If the rental income is relating to a Buy to Let, Business or
semi-commercial mortgage or loan, please see ’Income
Proof – For Business Loans and Buy to Let (not including
CCA Regulated Loans)’.
Any rental income that is being used as income for a CCA
Regulated Consumer Loan should be net of any tax and
other deductions such as: mortgage payment; property
maintenance; running costs; service charges; ground rent;
etc. The net monthly figure should be entered into the
Affordability Assessment Calculator. An Assured Shorthold
Tenancy Agreement (AST) should be used as proof of this
income. If a current AST is not available, but one will be in
place in the near future, please refer the application with
an Out of Plan Assistance form and any other pertinent
information, such as an Agent Assessed Rental Income, for
consideration.
Do not use rental income if the applicant has recently
missed payments because they haven’t received the rental
income.
Retired and Unemployed Applicants
The net monthly income for the relevant income is
calculated using the following method:
Income for tax purposes - Income tax
Divided by the relevant period
Private pension – Accepted, proof required:
• Monthly pension - two private pension payslips dated
within the last three months
• Annual pension - the last annual award statement or P60
If the applicant doesn’t have the requirements above –
• Monthly pension - two bank statements dated within the
last 3 months which shows the credit to their account
• Annual pension – bank statement showing the amount
credited
State Pension / Pension Credit / Disability Living
Allowance/ Child Tax Credit / Working Tax Credit / Child
Benefit/ Widowed Parent’s Allowance /Carer’s Allowance/
Attendance Allowance - Accepted, proof required:
• Award statement for the current year
• OR two bank statements dated within the last three
months
Incapacity Benefit /Employment and Support Allowance
after 2008
Accepted, proof required:
• Award letter dated within the last six months
• OR two bank statements dated within the last 3 months,
with confirmation that it will continue to be awarded
throughout the term of the loan
Benefits for Children - Accepted if the:
• Income will not cease during the term of the loan, as the
children may attain an age during the term of the loan that
makes them ineligible for the benefit
• Applicant provides a letter detailing a satisfactory and
plausible explanation that they can sustain the payments
once the benefit ceases
Child Maintenance – Accepted in the following
circumstances:
Arrangements must be made by:
• made via the Child Support Agency (CSA)
• OR by Court Order
The terms of the arrangements must be assessed by the
broker before submitting the case to the lender.
In both arrangements the ages of the children must be
established and the terms of the CSA Agreement or Court
Order reviewed to assess for future affordability as the terms
may vary.
Proof required:
• a certified copy of the CSA Agreement or Court Order
• OR bank statements to confirm the latest two payments
The net monthly income for the Child Maintenance income
is calculated using the following method:
Confirmed Income
Divided by the relevant period
Other Acceptable Benefits
Industrial Injuries Benefit/War Pensions
• Award letter dated within the last 6 months
• OR two bank statements dated within the last 3 months
Job Seekers Allowance/Income Support/Employment and
Support Allowance
- Accepted in certain circumstances
Only accepted as income for the second or subsequent
applicant where the first applicant is working and is a joint
owner of the security.
Unacceptable Benefits
Bereavement Allowance, Bereavement Payments, Health
in Pregnancy and Sure Start Maternity Grant. This list is not
exhaustive so please refer any that have not been detailed
above as we may be able to accept them.
Income Proof - For Business Loans and Buy To Let
(not including CCA Regulated Loans)
Income proof is required for all applicants in all cases.
Minimum employment period with the same company
and a minimum trading period for self-employed is 1 year.
(References may be required).
Employed - If monthly paid, 2 payslips dated within the last
3 months; if weekly paid, 4 payslips dated within the last 2
months. Additional income may be considered with proof.
Self-employed - We require a “declaration of income
and affordability” and 2 strong income proofs of selfemployment, e.g. Trade Invoice, 715 or SC60 certificate,
VAT or Inland, Accountants reference, inland revenue
correspondence etc . In addition we also require either
an acceptable Accountants Certificate (this is compulsory
should the applicant be declaring more than £3,000 net
income per month or have been trading for more than 3
years) or 3 months business/ personal bank statements.
Personal/Business Bank Statements must show their
declared income being credited to the account. A
plausibility assessment will also be conducted. Two further
strong proofs of self-employment will also be required.
DWP - declaration of income and affordability with proof
required.
Board and Lodgings - not accepted.
Independant Legal Advice
This should be recommended to all customers. Up to
£100,000 not required. Required on certain cases, e.g. loans
>£100,000, applicants of pensionable age, parent and child
borrowers, etc.
If the loan is being used for business purposes we will
require Independent Legal Advice for the applicants if the
business only relates to one applicant.
Please refer to the General Underwriting and Processing
Guide for more information.
Loan to Value (LTV)
LTVs based on market value or purchase price whichever
is the lower.
Shared Ownership properties are based on market value
multiplied by applicant’s share.
Loan Terms
CCA regulated term loans: 3 to 30 years.
Unregulated and CCA regulated term loans secured on Buy
to Let and semi-commercial properties: 7 to 30 years.
Maximum Loan Amount
Maximum loan amount includes Broker Fee, however is plus
Acceptance Fee, Solicitor’s Costs and Title Insurance for term
and bridging loans unless detailed on the plan. Buy to Let
and Semi-commercial includes loan amount, all insurances
and all fees.
Proofs of Name, Signature, Residency and Address
Signed official identification is required for all customers in
all cases. Certified copies of documents will be acceptable
from FSA authorised brokers by prior agreement. Certified
copies may also be acceptable from packagers by prior
agreement.
Know Your Customer
Blemain Finance has procedures in place to protect itself
and others from financial crime.
It is a requirement that brokers and lenders verify
identification for every customer. As part of that process we
must take reasonable steps to establish that a customer is
who he/she claims to be by obtaining sufficient evidence
of identity. The requirements to verify ID are listed in the
Blemain Finance iDeal Pack.
As a broker you must:
a. see original documents and provide certified
copies with date validation;
b. check that any documents requiring a signature have
been pre-signed; and
c. confirm where possible that any associated photograph
of the applicant bears a good likeness.
Purpose
Any legal purpose is accepted. However this must be clearly
detailed on the Application/Enquiry form on day 1 as the
purpose may affect the terms and conditions applied to the
facility. Should Blemain Finance establish at any stage the
incorrect documentation has been issued we will request
that the correct documentation be issued and the relevant
regulation be applied.
Repayment Types
• Capital Repayment
• Interest Only for term loans and mortgages over £25,000
valuations of £1 million or more are strictly subject to
underwriter approval. We will contact any valuers or other
appropriate sources regarding the valuations of a property.
Should any further information be discovered which is not
reflected in the valuation or may have a detrimental effect
on the value of the property, we reserve the right to reduce
the loan amount or decline the case.
We require original valuations with no amendments. If
amendments have been made we require all previous
versions and the case will be referred and is strictly subject
to Credit Committee approval.
For Sale Details: If the property is currently for sale with an
estate agent, please supply a copy of the sales particulars.
The Market Valuation and projected 90 day Market
Valuation should not have more than a 10% difference
between them. If the difference is >10% then an
underwriter approval is required.
PLEASE REFER TO GENERAL UNDERWRITING & PROCESSING
GUIDE OR IDEAL PACK FOR FURTHER DETAILS.
All fees include VAT where applicable.
Please note: Cases will be reviewed by the Fraud Committee
for the purpose of identifying potential fraud. This will
include income and valuation fraud. Should in our opinion
any case you present be deemed to be fraudulent the case
will be rejected and action taken by the Fraud
Committee, which will ultimately result in your Accreditation
being revoked.
Responsible Lending
If a client is remortgaging or redeeming a second charge it
must be in the client’s best interests and to their benefit.
Self-build Properties & Developments
Each case considered on its own merits. Strictly by
underwriter approval only. Must have NHBC, Zurich or
Premier Guarantee to accompany Architect’s Certificates.
Shared Ownership Properties
(By referral only).
Telegraphic Transfer
£30 fee.
Underwriter Referral
Underwriter referral is required in the following instances:
• the loan is >£250,000
• the loan amount is greater than the mortgage balance
• the Affordability Assessment Form indicates one is
required
Valuations
Must be dated within the last 2 months.
Residential Valuation Panel is available from your Business
Development Executive. All valuers must be based within a
15 mile radius of the property.
A specific valuer is required in some of the postcode areas
surrounding London.
Audit valuations may be required if the loan amount is
>£50,000, LTV >60% or property value is >£500,000 or
a Valuation Bypass Scheme has been used. All property
Help us to help you
To ensure you contact the department you need we
have devised this list of `useful numbers´. Please refer
to it before contacting us so that you will access the
department to suit your requirements. Many thanks!
New Enquiries & In Principle Decisions Team
Call:
0844 873 4120
Fax: 0844 873 4121
Email: [email protected]
Underwriting Relationship Managers
Call:
0844 873 4127
Fax: 0844 873 4137
Email: [email protected]
`Speak With´ Team
Call:
0844 873 4129
Non-packager Referral Team
Call:
0844 873 4125
Fax:
0844 873 4126
Visit our websites at
www.blemainfinance.co.uk
www.brokervenue.co.uk

Secured Loans

Transcription

Similar documents

HNSA thanks Ed Zajkowski for his generous loan of the original

special auto, bike, boat and RV rates

Mortgage Services

MicroCity Loan Program - Greater Cincinnati Microenterprise Initiative

EQUITY - RBFCU

February 2013 - Knoxville TVA Employees Credit Union

Summer 2015 Augusta VAH - Augusta VAH Federal Credit Union

Powerone FCU News - Power One Federal Credit Union

Blemain Application Form

VA Loans: Ge ng Vets into Homes